Hotel Topeka may have a potential buyer
TOPEKA (KSNT) - The City of Topeka reports a local city-owned hotel may have a new owner soon.
The City of Topeka announced in a press release on July 15 the Hotel Topeka may have a potential buyer secured for the building. The Wichita-based group Endeavor Hotel Group has sent a Letter of Intent for the purchase of the hotel.
“Our team is excited to add the Hotel Topeka to our portfolio,” said President and CEO of Endeavor Roy Arnold. “We have a clear vision intended to create value for the community and to make Topeka a preferred destination for regional conferences and events.”
Endeavor Hotel Group reportedly has plans to invest $6 million for the rehab of the hotel and envisions spending $2 million to supplement operations until the property is stabilized. The city has spent $12.2 million on the hotel since purchasing it in 2023.
The City of Topeka said Endeavor Hotel Group plans to purchase the hotel for $1 million with the rest of the city's investment into the building being payed off through taxes raised by a community improvement district (CID) and transient guest tax (TGT) over the next 20 years, according to the city's press release.
“Even though we are not recouping all of our investment up front, we recognize the risk that comes with the large investment that the Endeavor Group is making and want to make sure they are successful,” said Topeka Mayor Michael Padilla. “Ultimately, the more successful they are, the faster the City will be able to recoup the investment we made in Hotel Topeka. CID and TGT are taxes only collected from individuals that are staying/spending money at the hotel property.”
The Letter of Intent is contingent upon Shawnee County agreeing to provide Endeavor with a long-term management agreement for the nearby Maner Conference Center along with the county investing around $6 million in the rehabilitation of the center.
"I'm excited about the vision Endeavor brings to Hotel Topeka and the potential it holds for our community," said City Manager Robert Perez. "Selling the hotel was one of my top priorities this year, and it was important to the City Council and me that we find a buyer with the experience and resources to truly transform the property. Endeavor’s track record and strategic approach give us great confidence that this hotel will become a vibrant asset for Topeka once again."
Endeavor Hotel Group previously submitted a bid, alongside other companies, for the hotel back in 2024. The group's 2024 proposal included a full renovation of the hotel at a cost of $7.25 million.
City leaders in the Topeka Development Corporation (TDC) cast eight votes in favor of allowing the city manager to sign the letter of intent on July 15. One member of the TDC abstained from the vote.
"We've taken a lot of flak for it, we felt like it was the right thing to do to hold that complex together at the time that various moving parts collided or aligned," said Topeka City Councilwoman Karen Hiller during the Topeka Development Corporation meeting on July 15. "We wanted to keep it open so that what was already committed could continue and, for the most part, that did happen and it was handled pretty well."
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